Kenya’s trade deficit in the nine months through September 2019 narrowed by 3.24 percent, or Sh27.85 billion, partly helped by reduced demand for industrial imports.
The deficit — the gap between imports and exports — dipped to Sh833.03 billion in the January-September period from Sh860.88 billion in the same period last year, data published by the Central Bank of Kenya (CBK) indicates. This the first drop in deficit since 2016.
Total imports dropped 3.68 percent, or Sh48.97 billion, year-on-year to Sh1.28 trillion, the statistics show, largely driven by a drop in key drivers of production in Kenyan factories such as machinery and transport equipment, chemicals and manufactured materials.
Expenditure on machinery bought from abroad reduced by 5.5 percent to Sh327.21 billion, manufactured materials dropped 5.69 percent to Sh221.64 billion, while orders for chemicals dipped 7.75 percent to Sh177.78 billion.
Total exports, on the other hand, slipped Sh21.12 billion, or 4.5 percent, to Sh449.47 billion due to reduced earnings from domestic exports largely farm produce.
Source: Business Daily
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